A competitive progression perspective of JIT systems: evidence from early US implementations

This study investigates the holistic implementation of just-in-time (JIT) manufacturing. We contend that the most important elements of holistic JIT systems – focused factory, reduced setup times, group technology, total productive maintenance, multifunction employees, uniform workload, just-in-time purchasing, Kanban, total quality control and quality circles – should be implemented in a sequential manner for a firm to reap sustainable operational gains. The right sequence of implementation of JIT practices is derived using the theory of competitive progression and based on four JIT practice bundles – conformance quality related practices, delivery reliability related practices, volume flexibility related practices and low cost related practices. Data collected in a cross-sectional field study of US manufacturers are used to test the suggested implementation sequence of JIT practices and the impact of the JIT practice bundles on improvement in non-value added performance. The results indicate that implementations of JIT management practices should be in the order – first, conformance quality related practices; second, delivery reliability related practices; third, volume flexibility related practices and; finally low cost related practices. In addition, significant improvement in operational performance, as reflected in improvement of non-value added performance, is achieved via the cumulative capability building.

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